Bad debt expense should be classified as a "General & Administrative Expense" as it relates to credit policy that was approved by the "Administrative Managers" to grant customers credit (Accounts Receivable). Hence, this expense needs to be shown as a "General & Administrative Expense" and not a selling expense. If this expense was truly a selling expense, the selling department would rarely grant credit sales as their performance (including total selling expense as part of it) would be higher as bad debt expense increases. Therefore, the selling department does not control it. I trust that this helps and any professor that says other wise is mistaken.

About Me

I am a passionate auditor & sme specialiast, who is keen in sharing my experiences in auditing & accounting, small & meidum enterprises. The exposure gains from dynamic audit life urge me to share the idea with everyone of yours, in order to benefit the general public at large.
Other than the topics shared, you might want to post the questions related to accounting & auditing issues/ accounting & auditing career/ small & medium enterprises issue to my email: myauditing@gmail.com (audit related), mysmeblog@gmail.com (sme related).